Hi, I am arriving really late in Marrakesh around 12 and leaving early in the morning at 7. Can I know what is the nearest and cheapest hotel for us to stay with taxi transfer?? Thank you so much an I appreciate the input!
Marrakesh Airport is extremely close to the city and many hotels, 5 minutes by taxi. Although airport taxis are very expensive for such a short distance.

You can take bus no. 19 which take you to the center http://www.alsa.ma/fr/marrakech/itineraire-urbain

...... arriving so late, the city-bus No.19 will be back in the Bus-depot for the night, so a taxi is about the only practical option.
I suggest hotel Ibis le Gare within 10 minutes taxi drive from the Airport. See map below, the Airport at bottom, directly above find the Railway Station, in this complex are located the Ibis Hotel and Supratours Bus-station. There are three Ibis hotels in Marrakech, the Ibis le Gare (station) is the one best suited for you.https://www.google.ie/maps/@31.6183608,-8.0229838,14z
At that time of night a petite taxi (for 3 passengers) might cost 100+Mad., a grand taxi (up to 6 passengers) fare has to be negotiated, the 200Mad. a driver might ask, for such a short trip is too much, given you'll be late and tired etc., just so you'll know and not be surprised.!
Book the Ibis in advance for a reasonable rate, just rocking-up expect to pay 60 euro or so. It's near the Airport, beside the Railway Station and Supratours Buses, accross the road from CTM Buses, a good smart hotel with a nice breakfast, but book ahead of travel.
The Taxi fares are posted on a bulletin board at the Airport...... if you can find it.!
http://reversehomesickness.com/africa/taxi-fares-morocco/
https://www.accorhotels.com/gb/hotel-2034-ibis-marrakech-centre-gare/index.shtml

In Medina you find many Riads and hotels also and it is more nice there than in new town. From new part of the town you would have long way to go to the center of Marrakech where are most of attractions. It is not far from the airport and if you want to stay a couple of days in Marrakech, you skip in such case to change a hotel.
Amani Hôtel Appart , Hotel ibis Marrakech Centre Gare , Mogador Express Gueliz , Hotel Corail, Hôtel Lawrence D'arabie , Hotel Kenzi Farah , Hôtel Palais Al Bahja , Hôtel Le Caspien are the best hotels in Marrakesh near airport .
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